AutoBeta(AutoBeta.net)11/23 Report--

According to foreign media reports, the German Metal Industry Union (IG Metall) issued a statement on November 22nd that Bosch, an auto parts supplier, plans to cut jobs related to self-driving and car steering products in Germany in the next few years. According to the report, a Bosch spokesman confirmed that the company will cut 5500 jobs worldwide, including 3800 jobs in Germany.

As for the reasons for the layoffs, a Bosch spokesman said: "the automotive industry is facing serious overcapacity and competition and price pressures continue to intensify."

As a German auto parts giant, Bosch Group has announced several layoffs during the year. Earlier this month, Stefan Hartung, Bosch's chief executive, said he planned to adjust staff further and cut jobs at German factories, including the car supply department, the tools department and Bossi Home Appliances subsidiary, because he would not be able to meet his economic targets this year. The auto industry has laid off as many as 3200 people.

Earlier in January, Bosch announced plans to cut 1200 jobs by the end of 2026, of which 950 are in Germany. The layoffs are mainly concentrated in the Intelligent driving and Control Systems Division (XC). The layoffs are due to increased energy and commodity costs and other reasons, leading to economic weakness and high inflation, slowing down the company's transformation process. In February, Bosch, a car parts supplier, announced that its software and electronics divisions would cut up to 1200 jobs by the end of 2026 because of high inflation and rising raw materials and energy costs.

Bosch Group Group, whose full name is Robert Bosch Co., Ltd. (BOSCH), founded in 1886, is one of Germany's century-old industrial enterprises, covering four business sectors: automotive and intelligent transportation, industry, consumer goods, energy and construction.

In May 2023, Bosch adjusted the automotive business structure and reorganized the automotive and intelligent transportation technology business; in January 2024, the business was officially renamed Bosch intelligent transportation business. At present, cars and intelligent transportation have become Bosch's largest source of revenue, accounting for 60% of the group's revenue, but profit margins are still at the bottom. According to reports, Bosch has about 429000 employees worldwide, of which about 230000 work in the automotive department.

In addition to Bosch, auto parts suppliers including Zaifu, Schaeffler, Valeo, Boze and other auto parts suppliers have also taken corresponding measures. Behind the layoffs and other measures taken by auto parts suppliers, the automobile industry is accelerating the transformation to electrification, the automobile industry is facing a decline in demand, and the market development space is gradually being compressed. In other words, the transition from fuel vehicles to new energy electric vehicles is not easy, especially since the cost of this change is very high, which has a huge impact on traditional car companies and the supply chain. To a certain extent, layoffs can reduce corporate spending and ease economic pressure.

At present, the global automobile industry is in a difficult stage of electric transformation, especially the slow popularization of electric vehicles in the European car market, coupled with the fact that overall car sales are still at historic lows, and the profit margins of traditional auto parts suppliers are also declining. It is difficult for enterprises to achieve revenue and profit growth. The transformation from traditional fuel vehicles to new energy vehicles has become a foregone conclusion, and it is also a general trend that the market share of fuel vehicles will be gradually replaced. Fuel vehicles will gradually withdraw from the historical stage. Under this background, both traditional cars and traditional auto parts giants will be under more pressure than ever before.

Under the general trend of electrification, the global automobile industry will reshape the pattern. Layoffs can solve the impact on employment in the process of energy and technology transformation on the one hand, and cut costs for enterprises on the other. Industry insiders predict that more auto parts giants may respond to the challenge through layoffs.

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